Acct 424 Week 3 - Grade for Christine Martin Week 3 Quiz...

Grade for Christine Martin: Week 3 Quiz
Numeric grade: 4/20 Letter grade:
Comments:
Chris, Thank you for a very nice quiz this week. The average for the class this week improved
from an eight last week to a ten this week for the quiz. Please review the quiz and e-mail me if
you have any questions before taking the mid-term exam this week. Good luck.
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Autograde Summary
Date Taken: 3/21/2010 7:08:43 PM
Time Spent: 1:01:34 (1:30 allowed)
Points Received: 4 / 20 (20%)
These are the automatically computed results of your exam. Grades for essay questions, and
comments from your instructor, are in the "Details" section below.
Question Type:
# Questions:
# Correct:
Multiple choice
10
2
Grade Details
1.
Question:
(TCO 6) Which of the following is not generally a disadvantage of filing tax returns on a consolidated
basis?
Your Answer:
Compliance costs
usually are higher.
Realized losses from
transactions
between affiliates
cannot be
recognized
immediately.
Operating losses of
an affiliate reduce

the tax basis of the
parent’s ownership
interest in the entity.
This increases the
gain on the disposal
of the affiliate.
Gains from one
affiliate can be
offset by losses
from another.  This
reduces the tax
liabilities of the
group as a whole.
CORRECT
All of the above are
disadvantages.
Instructor Explanation:
This is an advantage of consolidation.
Points Received:
2 of 2
2.
Question:
(TCO 6) Which of the following tax items is not likely to be considered when a group of related
corporations is evaluating the election to file on a consolidated basis?